Credit repair software allows consumers to fix inaccurate information and errors on their credit reports without enrolling in a credit counseling program or otherwise paying for credit repair services. Such programs are often expensive, time consuming and confusing and many people do not have the financial means to pay for such programs. It is possible to fix an account once a consumer learns how to and it is important to have a system in place so that mistakes can be quickly identified and corrected. One mistake can destroy a consumer’s ability to buy even the most basic things such as a home or car. If this happens, the consumer may face foreclosure or the loss of their home or other valuable property.
Credit repair does not always require legal action; sometimes it is enough to notify the credit bureaus and ask for clarification and a response. When a problem is found, it is advisable to address it immediately so that it does not continue to affect credit scores Fixed Credit Repair. Consumers should not make the mistake of ignoring problems; doing so may require them to file bankruptcy. Disputing mistakes is an important step in creating a more accurate credit standing. This process may require the assistance of legal counsel but it is important to begin the process before too long.
Many people assume that they should dispute all bad credit reports each year because this is what the law requires. However, it is possible to avoid the need to contact the credit bureaus altogether by learning how to identify the bad reports before making any efforts to remove them. There are three major reasons that a credit report may show information that is outdated, inaccurate or both. They include:
- An individual’s payment history is reported on a monthly basis which is not accurate. This inaccurate data can be corrected through the help of a credit repair service. * Credit repair services can be used to dispute information on items such as tax debts or outstanding bank charges. * An individual can delete negative items that have been reported by creditors using professional tactics. * A homeowner can update and dispute negative items that have been reported by mortgage lenders using standard dispute procedures. While these methods may not resolve a specific dispute with a creditor, removing negative items can prevent creditors from claiming that a person has been inaccurately described on a loan application.
The process for removing inaccurate, outdated or unverifiable information involves three steps: identifying the incorrect information, having the incorrect information removed and having the new information reflecting a more accurate description of the borrower. The first step involves identifying the inaccurate information. This can be accomplished by reviewing each account for errors. If errors are identified, they must be disputed with the credit bureaus. Credit repair companies can also use legal tactics to remove negative information from reports. These tactics can be helpful if the negative information is not accurate and only relates to one small part of a person’s history.
After the items are disputed, if the original creditor still has not corrected the error, then a company can hire a lawyer to negotiate a settlement agreement. In some cases, the credit bureau will agree to remove the inaccurate item and pay the person a small fee. In other instances, the creditor may offer to fix the item for free in exchange for payment of a fee. Most repair companies will work with clients on a regular basis to keep their businesses operating at a high level.